Newell Brands Inc. (NYSE: NWL) is selling 10 percent of its portfolio to focus on fast-growing core businesses, such as writing, home fragrance, baby and food storage. Newell, which owns the Elmer’s and Sharpie Brands, will use the proceeds from the divestitures to fund future acquisitions and pay down debt. The company has already been reshaping its portfolio through M&A and now is going to expand those efforts.
Most of the properties up for sale are from the following divisions: outdoor solutions, which is known for the K2 brand; consumer solutions, including heaters, humidifiers, and fans; and home solutions, including the consumer container business. The lines being sold produced $1.5 billion in net sales in 2015. Newell is aiming to complete the process in the first half of 2017. The company agreed to sell its tool business, known for the Irwin brand, to Stanley Black & Decker Inc. (NYSE: SWK) for $1.95 billion.